High Plains Energy Inc.
TSX VENTURE : HYE

High Plains Energy Inc.

May 30, 2006 09:02 ET

High Plains Energy Inc. Successfully Tests Two Areas for Natural Gas

CALGARY, ALBERTA--(CCNMatthews - May 30, 2006) - High Plains Energy Inc. (TSX VENTURE:HYE) ("High Plains" or the "Company") is pleased to report its highlights as at May 30, 2006.

HIGHLIGHTS

- Production sales averaged 457 barrels of oil equivalent per day (boepd) for the three months ended March 31, 2006

- Assembled a new experienced operational and technical team

- The Board of Directors has approved a capital budget for 2006 of approximately $10 million

- Participated with a 50% working interest in a successful natural gas well at Martin Hills

- Operated and drilled with a 50% working interest a successful Sawtooth zone natural gas well in the Granlea area of southern Alberta

- Initiated work on drilling three wells in the Gildford, Montana prospect. It is anticipated that these wells be drilled in the third quarter of 2006

The Company's financial statements and MD&A has been filed on SEDAR at www.sedar.com . Additionally, this information may be found on the Company's website at www.hye.ca.

READER ADVISORY

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

The reader is further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • High Plains Energy Inc.
    Daryl W. Cook
    Chief Executive Officer
    (403) 290-0078
    (403) 294-0788 (FAX)
    Email: daryl@hye.ca
    or
    High Plains Energy Inc.
    Vince Ghazar
    Chief Financial Officer
    (403) 723-4456
    (403) 294-0788 (FAX)
    Email: vince@hye.ca